Correlation Between Amg Yacktman and First Eagle
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and First Eagle at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amg Yacktman and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Focused and First Eagle Global, you can compare the effects of market volatilities on Amg Yacktman and First Eagle and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amg Yacktman with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and First Eagle.
Diversification Opportunities for Amg Yacktman and First Eagle
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and First is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Amg Yacktman is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amg Yacktman Focused are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Global has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and First Eagle go up and down completely randomly.
Pair Corralation between Amg Yacktman and First Eagle
Assuming the 90 days horizon Amg Yacktman Focused is expected to generate 1.12 times more return on investment than First Eagle. However, Amg Yacktman is 1.12 times more volatile than First Eagle Global. It trades about 0.13 of its potential returns per unit of risk. First Eagle Global is currently generating about 0.05 per unit of risk. If you would invest 2,111 in Amg Yacktman Focused on September 5, 2024 and sell it today you would earn a total of 30.00 from holding Amg Yacktman Focused or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg Yacktman Focused vs. First Eagle Global
Performance |
| Timeline |
| Amg Yacktman Focused |
| First Eagle Global |
Amg Yacktman and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and First Eagle
The main advantage of trading using opposite Amg Yacktman and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, First Eagle can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Eagle will offset losses from the drop in First Eagle's long position.| Amg Yacktman vs. First Eagle Global | Amg Yacktman vs. Invesco International Growth | Amg Yacktman vs. Marketfield Fund Marketfield | Amg Yacktman vs. Ivy Asset Strategy |
| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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